The fifth-largest shareholder in Murray & Roberts (M&R) plans to reject a hostile buyout bid from Germany’s ATON that values the South African builder at nearly $600 million.
“The offer of R15 per share is below what we believe is fair value. As a result we won’t be committing to sell into this price,” Brian Pyle, an analyst at Old Mutual’s equity investment arm, told Reuters.
Financial services conglomerate Old Mutual holds about 5% of M&R, whose board snubbed the offer from its biggest shareholder ATON, a company owned by German investor Lutz Helmig. ($1 = 11.6962 rand)Â
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“The offer of R15 per share” is jsut a number…. Let us negotiate a number that ATON can pay, North of R15.
I remember when Carnegie sold his company to J P Morgan for $480 million and later asked J P Morgan would he have paid if he asked for $100 million more? and Morgan said “have a nice day mr Carnegie”….
South African’s, lets not stand in the way of progress…. Lets negotiate and bring in Foreign Direct Investment(FDI).
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You need property rights for that, buddy.. At the moment it seems rather risky to commit billions (of Rand) if you are a foreign investor.
ATON is chancing it’s luck.
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Why pay R15 if they are currently trading at R13? buy now and some cheaper later.
Is PPC perhaps not a good example of what not to do?
Did they also not want more and and what happened? the deal fell through …
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